The 5 biggest challenges in B2B e-commerce

Online trade in the business-to-business (B2B) sector has long since arrived. B2B and e-commerce now go hand in hand. One in five retailers generates its revenue through online sales.

The future of B2B e-commerce looks excellent. People's changing shopping behavior is not stopping in the corporate sector. Those who already offer digital shopping options or have set the course for digital today have perfect chances for a successful future.

Regardless of whether you are already active in online commerce in the B2B sector or are just getting started - the potential is great. However, B2B e-commerce does come with some challenges. We'll show you the 5 biggest challenges and what benefits you can derive from online trade with corporate customers.

Definition: What is B2B Commerce?

B2B (business-to-business) e-commerce refers to all digital forms of transaction between business customers. A company sells products and services online to another company. The digital solutions used in online trade between companies range from a classic online store and online marketplaces to supplier and procurement platforms.

The potential of B2B e-commerce is huge. Already in 2018, B2B e-commerce sales in Germany amounted to 1.3 trillion euros. Due to advancing digitalization and the COVID-19 pandemic, B2B online retail sales are steadily increasing. According to calculations by IFH Cologne, a quarter of all wholesale sales will be generated online by 2025.

Differences in online trade B2B vs. B2C

B2B e-commerce differs significantly from online trade with end consumers (B2C). Online trade at the corporate level usually involves complex goods that require explanation. This entails different structures and processes than in the classic B2C sector. These are the main differences between B2B and B2C e-commerce:

1. The customer

While B2C commerce sells to private individuals and thus to tens of thousands to millions of people, the customers in B2B commerce are companies. The target group in corporate online commerce is thus significantly smaller. Due to the smaller number of suppliers and customers in the B2B sector, partnerships often develop over many years.

2. The baskets

The shopping carts of participants in B2B e-commerce are generally larger. This means that the order values in the B2B sector are also much higher than in the B2C sector. Whereas in the end-customer market, the conclusion of a purchase usually happens quite quickly, more thought is required in B2B e-commerce.

3. The purchase process

Every sales deal involves multiple approvals and numerous stakeholders. The decision-makers are usually not individuals but corporate units (so-called buying centers). The sales cycle thus takes longer, resulting in longer communication paths and more frequent interactions.

4. The Customer Journey

The customer journey for private customers is relatively short and linear. After identifying a need, products are searched for and compared, and finally purchased. In B2B e-commerce, the decision-making process is often long. Both the number of decision-makers and the complexity of the products are reasons for this. The decision can therefore take weeks or even months.

5. The prices

The prices in the private customer business are approximately the same. In B2B e-commerce, on the other hand, different prices have to be managed. While buyer A may negotiate an individual price, buyer B must buy at the list price.

Challenges in B2B e-commerce

Those who rely on B2C solutions in B2B e-commerce will quickly reach their limits. Often, the functional scope of B2C e-commerce platforms is not sufficient for B2B merchants. Custom workflows become necessary, which poses major challenges for many companies.

1. Ensure individuality

Long-term partnerships with customers often result in individual agreements on conditions regarding prices or delivery. A B2B platform must map these specific conditions in order to be accepted. Speaking of prices: It is true that purchase on account is still the most popular payment method in B2B online commerce. However, the acceptance of other payment options such as PayPal or credit card is increasing. With increasing transactions via mobile devices, transactions via wallets (Google Pay or Apple Pay) are also becoming interesting for B2B e-commerce.

2. Map different workflows

Another challenge in B2B commerce is the involvement of multiple decision makers. The larger the company, the more people are likely to be involved in the purchasing decision. Depending on the department and person, there are different budget responsibilities and approval rights. It may be that a department can fill a shopping cart, but must pass the cart to an authorized person to process the order. These approval processes and workflows must be mapped by the B2B solution.

3. Linking of different systems

One of the biggest challenges for B2B companies in e-commerce is integration into existing IT infrastructure. Different customer requirements, product portfolios, data and processes make a system architectural challenge out of a B2B platform. Data and information must be exchanged between systems. Linking all digital solutions, from enterprise resource planning to order management and accounting, to logistics and marketing, requires some technical know-how. A powerful integration of the B2B online store into the existing infrastructure and the smooth connection of services such as payment and shipping are the be-all and end-all of a successful B2B e-commerce strategy.

4. Increase attention and acceptance

A beautiful, new online store usually doesn't sell anything on its own. So it is necessary to build marketing measures into the B2B e-commerce strategy. The first and perhaps most difficult step is to advertise to existing customers. Often, long-standing relationships have been established and a direct sales force with its own contacts has been set up. To increase acceptance of the new e-commerce solution, benefits must be communicated clearly and transparently. Then, the company's core markets can be targeted and potential customers can be won over to B2B e-commerce.

5. Optimize processes

At the end of the day, people are still buying, even on the business customer side. What is already commonplace in the B2C sector is increasingly expected by B2B customers as well, namely smooth and fast order processing. For B2B retailers, it is essential to constantly improve their own processes. This includes simplifying processes, automating workflows and transparent communication.

Advantages of B2B trade

You see: Building an e-commerce solution for online trade in a corporate context requires know-how and perseverance. However, the hard work will certainly pay off, because B2B e-commerce offers a number of advantages.

1. Market development - exploiting new potential

B2B e-commerce enables companies to tap into markets and target groups that were previously inaccessible. Be it due to geographical distances or low margins in face-to-face sales. With an e-commerce solution, business can be internationalized as well as pure online buyers (self-service) can be reached.

2. Sales growth - increase sales

Opening up new markets and target groups naturally also holds the potential to increase sales. With a smooth and efficient buying process, customers may buy more often. In B2B e-commerce, related products (so-called cross-selling) or higher-value products (so-called up-selling) can also be operated more effectively.

3. Building relationships - retaining customers for the long term

With digital solutions for retailers, you not only make it easier for customers to find and connect with suppliers. With a smooth process and additional services, you can also retain the customer in the long term. Keeping an existing customer is often much cheaper than acquiring new ones.

4. Increasing efficiency - optimization through data

Thanks to digital solutions, you can not only acquire and retain new customers. You also gain valuable insights into buying behavior. With automatic data collection and evaluation, you can analyze usage behavior and personalize products and services. Direct feedback from customers also helps you improve products. As a result, you can make faster and better decisions and improve your own processes by linking all internal systems.

5. Cost savings - better allocation of resources

Lengthy, paper-based processes cost money and time. By automating your processes, you can save costs with online B2B commerce. Not only your accounting department will thank you, but also your employees. With the elimination of time-consuming processes, they can devote themselves to more important tasks.

Shopify B2B - How it works

The Shopify B2B section includes many features that enable B2B sales in your shop without having to use third-party apps or other intermediate solutions. For example, you can create custom price lists or currencies and payment terms, but also connect diverse buyers and locations. You can also create a customised theme for your B2B trade. With these functions, you can add B2B to your B2C shop and thus create a mixed shop or create an extension shop for B2B customers.

Shopify B2B is only convertible with a Shopify Plus plan so far.

B2B Examples: Business-to-business commerce in practice

B2B can be implemented not only for physical products, but also for digital ones. Some of our customers have already successfully implemented B2B in Shopify. We'll show you which ones they are.

Selecta

Selecta is the largest supplier of food from vending machines. They are now present on Shopify Plus, where they offer business or wholesale customers the opportunity to purchase the well-known products from the vending machines.

Babbel

Everyone has probably heard of Babbel. The well-known provider of language courses has been working on the basis of Shopify Plus for a long time. With the extension "Babbel for Business", Babbel has also been offering language courses in the B2B area for some time. Companies can register here and give their employees access to the courses.

Bego

Another example of Shopify B2B is Bego. The leading manufacturer of dental prostheses and implants relies on Shopify Plus. The online shop is designed purely for B2B business and supplies dentists and dental practices throughout Germany.

Conclusion

B2B e-commerce presents a number of challenges. Nevertheless, the effort of building digital solutions in enterprise commerce can be worthwhile. In the future, more and more purchases in the B2B sector will take place online. Those who take the right steps today to ensure a smooth buying process via online platforms will have a successful future ahead of them. Those who already offer e-commerce solutions can leverage the full potential of online trade in the B2B sector by automating and optimizing their processes.